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EBAY 1099. Sales tax collected is not on the form. I thought it would be.
Mickey71
Posts: 4,234 ✭✭✭✭
I thought the form would show GROSS. It basically shows in between gross and net. It does not show the taxes that EBAY collects on the sellers behalf. Seems easier to understand; but it still is a surprise. So we don't mess with the sales taxes whatsoever. I thought we would have to deduct it from GROSS total. ??? Anyone have more experience with this??
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https://forums.collectors.com/discussion/1085324/i-think-we-just-get-a-reprieve-for-a-year-on-the-1099-income-reporting-for-our-cards-from-the-irs#latest
I got a 1099 from eBay last year (for 2021 sales) being that Maryland was one of two states to trigger it on $600 worth of sales.
The 'sales' amount was hammer price plus whatever I charged for shipping. No sales tax as that is just a passthrough that eBay collects and submits to the state.
Yes, this is what I see. Thanks Daniel.
How are the final value fees deducted?
Nic
Guides Authored - Graded Card Scanning Guide PDF | History of the PSA Label PDF
The 1099 shows just sales but that does include taxes and shipping, in other words anything ebay collected. In case you didn’t know ebay also collects fees on taxes and shipping. Go to selling/performance/sales and then do a sales report from 1/1/22 to 12/31/22 and it will give you a breakdown, gross sales less fees and taxes and will give you your net.
No. The taxes are not on the form. Just the item price and shipping. No sales tax
That is strange to me, but it is beyond my belief that eBay's accountants have gotten it wrong. What did your tax professional say?
When I run the sales report from the seller hub page, some of the data it displays includes:
Total Sales (includes taxes)
(in my case, the total sales figure does not match up exactly with the gross amount reported on my 1099; I believe that might possibly have to do with items sold towards the end of December that weren't paid for until January, but that is a guess and not 100% certain)
Taxes and fees (broken down by collected by seller vs. collected by ebay)
(mine are 0 collected by seller / 100% collected by ebay)
Selling costs
(this is itemized on the report later, detailing each type of various ebay fee, as well as the amount on shipping labels)
Net sales (net of taxes and selling costs)
So yes, the taxes do appear to be on the sales report.
I just did a spreadsheet and deducted final value fees as a cost of sale when I did my taxes last year.
Can PSA grading fees be added to cost of a card when determining taxes? I paid PSA $5000 for review of a 1986 Michael Jordan PSA-9, which bumped to a PSA-10. I sold the card last month (January 2023) in a Memory Lane Auction.
Yes any expenses in regards to your selling can be deducted.
Really not necessary as ebay provides all the data by doing a sales report. Like stated above it gives you a breakdown of all the expenses you incurred during the year. You can have all the info you need for taxes in a couple of minutes.
Yes, on the sales report on EBAY. But the 1099 i got just showed sale price and shipping. No taxes.
Although, the sales report does show your fees broken down...which is good.
There is only one total on the 1099. That total includes sales, shipping and taxes. Yes taxes are included in the total, just not broken down. Like someone else said the 1099 total and the total on the sales report may not match exactly but is close.
Good morning….you may want to double check the sales tax being included - eBay’s 1099 page says it’s not. Perhaps yours is different but each person should confirm on their own.
“Additionally, Form 1099-K does not include the sales tax when it is automatically collected and remitted by eBay.”
Correct. Also, if you see your monthly totals and they say $4000, $5109, 6243.....it confirms that no sales tax is in those totals. It would show totals like $4326.77, $5601.88 etc. if sales tax were in there.
Still think the total on the 1099 includes taxes. If you look at a sales report it says Total Sales(includes taxes). That matches the 1099 or very close. On the sales report total sales minus fees and taxes gives you your net which is what you would pay taxes on,
Not likely. Most of us would have more than that "invested" in our cards.
Please, please consult your tax professional and don't make this type of decision based on what some clown on the Internet (including, but not limited to, me) tells you. Please.
Spoke with EBAY today. The 1099 does not include state taxes collected by EBAY.
Wouldn’t be the first time someone at ebay told someone something wrong, lol. I spoke with ebay twice this week, one told me wrong, one told me right. I think we should all let our tax peeps figure it out. Good luck to all!
Just go through your last month of sales and it should match your 1099 for December. Mine did and it was the price of card plus the shipping. No sales tax whatsoever. And EBAY collected tax. My 1099 does not reflect sales tax.
I did that and mine included tax. Msybe it varies by state?